Conventional pad stacking apparatus for diapers or the like provides a stack of vertical pads which are pushed laterally into cartons. My prior U.S. Pat. No. 2,324,930 is exemplary of prior art pad stacking apparatus. My earlier U.S. Pat. No. 2,131,808, particularly FIGS. 20 and 21, shows apparatus for assembling pads in a horizontal array but doesn't disclose apparatus for grouping vertical stacks which have been compressed and subsequently tilted on edge with the group of stacks being discharged laterally as a unit into a shipping package. In addition, my prior U.S. Pat. No. 2,131,808 does not show apparatus for compressing the horizontal array of pads prior to lateral discharge and maintaining the compression of the pads during subsequent handling and orienting of the pads.